Travel much for business? You might soon have more hotel rooms to choose from while you’re on the road, at least according to the third quarter national hospitality report released recently by Marcus & Millichap Real Estate Investment Services.
Marcus & Millichap reported that the hotel industry is strong today, with more than 75,000 hotel rooms under construction across the country as of the end of July. That is an increase of 23 percent from one year earlier.
This increase shouldn’t prove too troubling, though. Marcus & Millichap reports that the new hotel projects underway represent only 1.5 percent of existing hotel stock. That’s a pretty conservative rate of growth and, hopefully, won’t result in overbuilding and a glut of unused hotel rooms in too many markets.
There are other good signs for the hotel industry, too. Marcus & Millichap reports that the average daily room rate in the third quarter of 2013 is $110.98. that’s up 4.6 percent from the average rate of $106.14 in the third quarter of 2012.
The occupancy rate has risen, too, but not by as much, jumping just 0.8 percent from the third quarter of 2012. In the third quarter of this year, the hotel occupancy rate for the first seven months of 2013 stood at a solid 63.2 percent.
